XAG/USD rises 2.4% to $69.75, fueled by a weaker USD and U.S. Treasury’s debt buyback program announcement.
Silver (XAG/USD) surged 2.41% to $69.75 on Friday, reaching its highest level in two months. The rally extends a weekly gain of over 7%, driven by persistent USD weakness and the U.S. Treasury’s surprise debt buyback plan, which aims to double purchases of longer-dated securities to curb borrowing costs.
The Treasury’s announcement initially pushed U.S. yields lower and weighed on the USD, boosting demand for dollar-denominated metals. While yields have partially recovered, concerns over rising U.S. debt and fiscal policy continue to pressure the greenback. Analysts suggest authorities may favor a weaker USD over higher long-term rates.
Recent U.S. economic data, including softer employment and inflation figures, have also reduced expectations for aggressive Fed tightening, further supporting silver’s advance.